Markets rallied on Thursday to end with gains of 0.8% but the Nifty 50 Index outperformed broader indices like the Nifty 500 with a wide margin to close near 16500.
Although Nifty IT rallied around 1% yesterday but sectors that are vulnerable to major downtrend are Metals and Technology and hence any up move in them may remain short-lived.
With rising inflation concerns, the government may further focus on efforts to curb inflation and this may have a direct impact on commodity-related sectors but may benefit financials, auto, and FMCG stocks in the near term.
With the spread between Nifty 50 and Nifty500 Index widening further, there is a clear-cut diversion of funds from Nifty 500 to Nifty 50 and once the diversion is complete, Nifty may be positioned to hit 18700 in the near term.
For Nifty, short-term support is seen at 16123 on a closing basis and the outlook for the near term remains positive.
SGX Nifty takes a nosedive as the ECB says it plans to raise interest rates in July. Oil slips on China lockdowns but stays near three-month highs. US Stocks fall sharply, Dow drops more than 600 points ahead of pivotal inflation data
Nifty50 Index & Spread of Nifty50-Nifty 500 Index
Stocks to watch
Positive Read Through
- HDFC increases retail prime lending rate on housing loans by 50 bps
- Bajaj Auto- Board Meeting On June 14, Co to consider share buyback
- HFCL- Co Received Purchase Orders Worth 733.9m Rupees
- Omaxe Limited- Jio-bp To Set Up EV Charging Stations Omaxe properties
- Shriram Transport Finance- Co Secures $250m Long-Term Loan From DFC
- Dr. Reddy’s – Co.’s unit Aurigene and Olema in Licensing Deal for Cancer Treatments
- Wipro- Co Continue To Experience Pricing Pressures Due To Increased Competition Among It Companies
- GMR Infrastructure – DVI Fund Mauritius sells 3.27m shares of GMR Infra at INR36.3 each: BSE bulk deal. Veda Investors Fund buys 57.59m; Deccan Value Investors buys
- Kotak Mahindra Bank Raises saving account interest up to 4%
- Omaxe -Partners Jio-BP to set up EV battery charging ecosystem at Co.’s properties
- Shriram Transport – Raises $250m L/T Fund from DFC of US
- ADIA to buy 20% in IIFL Home Finance, most significant such investment in the space
Negative Read Through
- Yes Bank- Reports say Board will decide on Rs 10,000 cr capital raising plan
- Petronet LNG- US Natural Gas prices surge to USD 9/mmBtu
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